The present invention relates to monitoring and managing loans made to creditors and more particularly to a method and system to monitor and manage a credit portfolio or loans to creditors or clients and to trigger credit actions if warranted.
A default of a creditor's loan to a lending institution, bank or the like, may cost the lending institution a considerable amount of money in charge-offs. The lending institution may have several ways to detect credit deterioration at its disposal. However, these tools may be inefficient or may not be optimally utilized. For example, there may not be existing means for combining these tools, measures or signals to generate a cohesive credit-risk view of the creditor. Different measures may provide conflicting or inaccurate information. Additionally, the lending institution may not react appropriately to the signs of credit deterioration. A delay in properly reacting to such signs of deterioration and reacting inappropriately may result in irreversible and adverse financial or economic results to the creditor and the lending institution.